Markets snap rising streak as Infosys scrip crashes

Mumbai: Domestic equities took a pause after a six-session winning run on Tuesday, with IT major Infosys' shares crashing following allegations of "unethical practices" against the company's chief executive.

The BSE gauge Sensex closed 334.54 points, or 0.85 per cent, lower at 38,963.84. It hit an intra-day low of 38,924.85 and a high of 39,426.47. The broader NSE Nifty too tumbled 73.50 points, or 0.63 per cent, to settle at 11,588.35.

The Indian market opened after an extended weekend. Infosys shares tanked nearly 17 per cent to mark their worst intraday fall in over six years during the day after the IT services giant said it is investigating claims by anonymous whistleblowers accusing CEO Salil Parekh of "unethical practices" to shore up profits through irregular accounting.

Sectorally, BSE IT and teck suffered a major blow due to Infosys crisis -- losing as much as 7 per cent. Telecom, metal and auto were among the other sectoral losers. On the other hand, BSE healthcare, consumer durables, bankex, finance, oil and gas, FMCG and realty indices rose up to 1.56 per cent.

In the broader market, BSE midcap index slipped 0.09 per cent, while the smallcap index rose 0.48 per cent.

Market participants also kept a close watch on political developments in the country as the BJP looked set to retain power with a bigger mandate in Maharashtra, where it is in an alliance with the Shiv Sena, as well as in Haryana.

Meanwhile, the Indian rupee appreciated by 20 paise to close at 70.94 against the US dollar. Brent crude futures, the global oil benchmark, rose 0.36 per cent to $59.17 per barrel.